Spanish companies sold in the IT sector are mainly SMEs, with more than 90% having a turnover of less than €15m, and at the same, from an investment point of view, in a very active sector. Specifically, a total of 120 acquisitions were registered in Spain in 2020.
Listed below are five transactions that we have highlighted because of the attractiveness of the companies sold:
Gestión Tributaria Territorial (GTT) was founded in Alicante more than 30 years ago and has become a reference in municipal tax collection, providing its services to more than 3,300 institutions throughout Spain and Latin America.
GED Capital acquired GTT in 2017 and in July 2020 sold it to the British management company AnaCap for nearly ?120 million. AnaCap Financial Partners is a private equity firm that was founded in 2005 and thanks to this operation, it has burst into Spain, where it had participated in several sales processes related to the financial sector, such as Caser oATG or Unicaja's mortgage management subsidiary, among others.
This fund totals some 5,100 million euros in assets under management and is one of the best-known firms in Europe for its specialisation in the financial services sector.
GTT's sales mandate began last autumn when GED hired a consultant to look for a buyer. The process did not officially start until last February but has not been halted by the coronavirus pandemic. In fact, the entire transaction has been negotiated during this time. The great technological potential of the company and the type of business in which it operates have played in its favour. This attracted different funds, such as Carlyle or Oakley Capital, with only six reaching the final phase, of which three made firm offers.
Eurobits, founded in 2004 and based in Madrid, provides account aggregation services to international banking and 'fintech' clients, including BBVA, Santander, Bankia, Sabadell, Fintonic, Telefónica, Banco Nacional de Grecia or La Banque Postale. Eurobits operates with customers in eleven different markets, managing more than 50 million account aggregation requests every month. In addition to the European market, it offers its account aggregation services in Mexico, Chile, Colombia, Argentina, and Peru.
Tink, founded in 2012 and based in Stockholm, serves its customers from its local offices in London, Paris, Helsinki, Amsterdam, Warsaw, Madrid, Copenhagen, Milan, Oslo, and Lisbon. Tink's technology and connectivity serves some of the world's leading banks and fintechs, including PayPal, Klarna, NatWest, ABN AMRO and BNP Paribas. The open banking platform is also used by over 5,000 developers.
The open banking platform Tink has acquired the company Eurobits for 15.5 million euros with two objectives: to expand its services to Latin America and increase its connectivity with banks and financial institutions in 17 markets and complements Tink's organic growth strategy to improve its platform and expand its offerings.
VozTelecom, is a communications operator specialized only in companies with thousands of customers throughout the Spanish territory, as well as leaders in the sector of cloud telephony for SMEs. Since its creation in 2003, it has led the migration of telephony and communications systems to the "cloud" in Spain, offering its services through a specialized distribution channel and present throughout the country. The company's cloud services have received international awards for offering customers a significant reduction in communications costs, significantly eliminating investments in technology and providing excellent customer service and professional after-sales support.
Gamma is a company listed on the AIM (London's Alternative Investment Market), since 2014. Gamma has taken over 94.90% of the capital of the Catalan SME communications systems company VozTelecom after the takeover bid launched last February at 4.42 euros per share. Finally, the holders of 4.35 million VozTelecom shares took part in the bid, bringing to 19.25 million euros the outlay made by Gamma, which operates in the same segment as the Spanish company.
Thanks to this operation, Gamma has reached an important milestone in its European expansion strategy, after identifying the Spanish market as key and having carried out its first expansion operation with the purchase of DeanOne in Holland at the end of 2018. Last March, Gamma also formalised the purchase of Exactive in the UK, a company specialised in unified communications in Microsoft environments.
SIA has its own product and scalable capabilities for the provision of services and the development of advanced cyber security solutions in Europe and the rest of the world. It has a diversified and stable client base with more than 10,000 security projects and is the national leader in identity and electronic signature solutions.
Indra, one of the main global technology and consultancy companies, has acquired SIA for ?70 million. This consolidates Indra's position as leader in the information security market in Spain and Portugal in terms of value-added services.
Thanks to the acquisition of SIA, Indra is positioned as a platform on which to capitalize on the good prospects of this market, which is a sector in transformation, with a high level of demand and in constant growth. The joint offering of SIA and Indra offers a significant benefit to its current and potential clients due to its breadth and market leadership. Therefore, it generates an important set of revenue synergies, based on the leverage of the commercial networks, taking advantage of Indra's vertical focus with SIA's specialized focus in Spain and Portugal, and the capacity of Indra's commercial network to position SIA's product at an international level. The combination of Indra's anomaly platform with SIA's fraud operation service to address the identification of fraudulent actions.
Freepik was founded in Malaga, and serves 32 million users per month in more than 200 markets through an extensive catalogue of high quality and carefully selected resources, consisting of more than 10 million icons, vectors, photographs and templates, among others. Freepik has transformed the online visual content and graphic design market thanks to its innovative Freemium business model, a powerful value proposition based on an attractive quality-price ratio. This business model is based on a differentiated approach to content production and supply. Thanks to the 5 billion downloads made by Freepik users to date, the company is able to identify consumption patterns and interests of its users through big data and artificial intelligence technologies, thus enabling it to offer a better user experience.
The EQT fund has formalized an agreement to acquire a majority stake in Freepik Company with the founders and management team, who will remain in the Company as minority partners. Freepik's management team, including the co-founders, will continue to lead the Company by building on its outstanding track record of growth and product innovation.
EQT will contribute to the acceleration of Freepik's international growth, leveraging EQT's digital expertise and international presence. Freepik aims to drive its penetration in current markets such as the US and Asia, in order to become the benchmark and market leader for online content creators and users at any stage of learning in these technologies worldwide.